Business Studies

CLASS–XII (2019-20)

Theory: 80 Marks 3 Hours

Project: 20 Marks

Units Periods Marks

Part A Principles and Functions of Management
1. Nature and Significance of Management 12 16
2 Principles of Management 14
3 Business Environment 12
4 Planning 14 14
5 Organising 15
6 Staffing 16 20
7 Directing 15
8 Controlling 12
Total 110 50
Part B Business Finance and Marketing
9 Financial Management 20 15
10 Financial Markets 18
11 Marketing Management 30 15
12 Consumer Protection 12
Total 80 30

Part C Project Work (One) 30 20

Part A: Principles and Functions of Management

Unit 1: Nature and Significance of Management
Concept
Management - concept, objectives, and
importance
Management as Science, Art and
Profession
Levels of Management
Management functions-planning,
organizing, staffing, directing and
controlling
Coordination- concept and importance
After going through this unit, the
student/ learner would be able to:
 Understand the concept of
management.
 Explain the meaning of
‘Effectiveness and Efficiency.
 Discuss the objectives of
management.
 Describe the importance of
management.
 Examine the nature of
management as a science, art and
profession.
 Understand the role of top, middle
and lower levels of management
 Explain the functions of
management
 Discuss the concept and

Unit 2: Principles of Management
Principles of Management- concept and
significance
Fayol’s principles of management
Taylor’s Scientific management- principles
and techniques
Unit 3: Business Environment
Business Environment- concept and
importance
Dimensions of Business Environment-
Economic, Social, Technological, Political
and Legal
Demonetization - concept and features
Impact of Government policy changes on
business with special reference to
liberalization, privatization and
globalization in India
Unit 4: Planning
Concept, importance and limitation
Planning process
Single use and standing plans. Objectives,
Strategy, Policy, Procedure, method Rule,
budget and Programme
characteristics of coordination.
 Explain the importance of
coordination.
 Understand the concept of
principles of management.
 Explain the significance of
management principles.
 Discuss the principles of
management developed by Fayol.
 Explain the principles and
techniques of ‘Scientific
Management’.
 Compare the contributions of Fayol
and Taylor.
 Understand the concept of
‘Business Environment’.
 Describe the importance of
business environment
 Describe the various dimensions of
‘Business Environment’.
 Understand the concept of
demonetization
 Examine the impact of government
policy changes on business in India
with reference to liberalisation,
privatization and globalisation since
1991.
 Discuss the managerial response
to changes in business
environment.
 Understand the concept of
planning.
 Describe the importance of
planning.
 Understand the limitations of
planning.
 Describe the steps in the process
of planning.
 Develop an understanding of single
use and standing plans
 Describe objectives, policies,
 strategy, procedure, method, rule,
budget and programme as types of
plans.

Unit 5: Organising

Concept and importance  Understand the concept of

Organising Process
Structure of organisation- functional and
divisional concept. Formal and informal
organisation- concept
Delegation: concept, elements and
importance
Decentralization: concept and importance
organizing as a structure and as a
process.
 Explain the importance of
organising.
 Describe the steps in the process
of organizing
 Describe functional and divisional
structures of organisation.
 Explain the advantages,
disadvantages and suitability of
functional and divisional structure.
 Understand the concept of formal
and informal organisation.
 Discuss the advantages,
disadvantages of formal and
informal organisation.
 Understand the concept of
delegation.
 Describe the elements of
delegation.
 Appreciate the importance of
Delegation.
 Understand the concept of
decentralisation.
 Explain the importance of
decentralisation.
 Differentiate between delegation
and decentralisation.

Unit 6: Staffing

Concept and importance of staffing  Understand the concept of staffing.

 Explain the importance of staffing
Staffing as a part of Human Resource  Understand the specialized duties
Management concept and activities performed by Human
Resource Management
Staffing process  Describe the steps in the process
of staffing
Recruitment process  Understand the meaning of
recruitment.
 Discuss the sources of recruitment.
 Explain the merits and demerits of

Selection - process
Training and Development - Concept and
importance, Methods of training - on the
job and off the job - vestibule training,
apprenticeship training and internship
training
Unit 7: Directing
Concept and importance
Elements of Directing
Motivation - concept, Maslow’s hierarchy of
needs, Financial and non-financial
incentives
Leadership - concept, styles - authoritative,
democratic and laissez faire
Communication - concept, formal and
informal communication; barriers to
effective communication, how to overcome
the barriers
internal and external sources of
recruitment.
 Understand the meaning of
selection.
 Describe the steps involved in the
process of selection.
 Understand the concept of training
and development.
 Appreciate the importance of
training to the organisation and to
the employees.
 Discuss the meaning of induction
training, vestibule training,
apprenticeship training and
internship training.
 Differentiate between training and
development.
 Discuss on the job and off the job
methods of training.
 Describe the concept of directing.
 Discuss the importance of directing
 Describe the various elements of
directing
 Understand the concept of
motivation.
 Develop an understanding of
Maslow’s Hierarchy of needs.
 Discuss the various financial and
non-financial incentives.
 Understand the concept of
leadership.
 Understand the various styles of
leadership.
 Understand the concept of
communication
 Understand the elements of the
communication process.
 Discuss the concept of formal and
informal communication.
 Discuss the various barriers to
effective communication.
 Suggest measures to overcome
barriers to communication.
Unit 8: Controlling
Controlling - Concept and importance
Relationship between planning and
controlling
Steps in process of control
Part B: Business Finance and Marketing
Unit 9: Financial Management
Concept, role and objectives of Financial
Management
Financial decisions: investment, financing
and dividend- Meaning and factors
affecting
Financial Planning - concept and
importance
Capital Structure – concept and factors
affecting capital structure
Fixed and Working Capital - Concept and
factors affecting their requirements
Unit 10: Financial Markets
Financial Markets: Concept, Functions and
types
Money market and its instruments
 Understand the concept of
controlling.
 Explain the importance of
controlling.
 Describe the relationship between
planning and controlling
 Discuss the steps in the process of
controlling.
 Understand the concept of financial
management.
 Explain the role of financial
management in an organisation.
 Discuss the objectives of financial
management
 Discuss the three financial
decisions and the factors affecting
them.
 Describe the concept of financial
planning and its objectives.
 Explain the importance of financial
planning.
 Understand the concept of capital
structure.
 Describe the factors determining
the choice of an appropriate capital
structure of a company.
 Understand the concept of fixed
and working capital.
 Describe the factors determining
the requirements of fixed and
working capital.
 Understand the concept of financial
market.
 Explain the functions of financial
market.
 Understand capital market and
money market as types of financial
markets.
 Understand the concept of money

Capital market and its types (primary and
secondary), methods of floatation in the
primary market
Stock Exchange - Functions and trading
procedure
Securities and Exchange Board of India
(SEBI) - objectives and functions
Unit 11: Marketing
Marketing – Concept, functions and
philosophies
Marketing Mix – Concept and elements
Product - branding, labelling and
packaging – Concept
Price - Concept, Factors determining price
Physical Distribution – concept,
components and channels of distribution
market.
 Describe the various money market
instruments.
 Discuss the concept of capital
market.
 Explain primary and secondary
markets as types of capital market.
 Differentiate between capital
market and money market.
 Discuss the methods of floating
new issues in the primary market.
 Distinguish between primary and
secondary markets.
 Give the meaning of a stock
exchange.
 Explain the functions of a stock
exchange.
 Discuss the trading procedure in a
stock exchange.
 Give the meaning of depository
services and demat account as
used in the trading procedure of
securities.
 State the objectives of SEBI.
 Explain the functions of SEBI.
 Understand the concept of
marketing.
 Explain the features of marketing.
 Discuss the functions of marketing.
 Explain the marketing philosophies.
 Understand the concept of
marketing mix.
 Describe the elements of marketing
mix.
 Understand the concept of product
as an element of marketing mix.
 Understand the concept of
branding, labelling and packaging.
 Understand the concept of price as
an element of marketing mix.
 Describe the factors determining
price of a product.
 Understand the concept of physical
distribution.
 Explain the components of physical
distribution.

Promotion – Concept and elements;
Advertising, Personal Selling, Sales
Promotion and Public Relations
Unit 12: Consumer Protection
Concept and importance of consumer
protection
Consumer Protection Act 1986:
Meaning of consumer
Rights and responsibilities of consumers
Who can file a complaint?
Redressal machinery
Remedies available
Consumer awareness - Role of consumer
organizations and Non-Governmental
Organizations (NGOs)
Unit 13: Project Work
 Describe the various channels of
distribution.
 Understand the concept of
promotion as an element of
marketing mix.
 Describe the elements of promotion
mix.
 Understand the concept of
advertising.
 Understand the concept of sales
promotion.
 Discuss the concept of public
relations.
 Understand the concept of
consumer protection.
 Describe the importance of
consumer protection.
 Discuss the scope of Consumer
Protection Act, 1986
 Understand the concept of a
consumer according to the
Consumer protection Act 1986.
 Explain the consumer rights
 Understand the responsibilities of
consumers
 Understand who can file a
complaint and against whom?
 Discuss the legal redressal
machinery under Consumer
protection Act 1986.
 Examine the remedies available to
the consumer under Consumer
protection Act 1986.
 Describe the role of consumer
organizations and NGOs in
protecting consumers’ interests.
 Suggested Question Paper Design
Business Studies (Code No. 054)
Class XII (2019-20)
March 2020 Examination
Marks: 80 Duration: 3 hrs.
Objective Short Short Long Long
SN Typology of Questions Type/ MCQ Answer I Answer II Answer I Answer II
Marks
1 Mark 3 Marks 4 Marks 5 Marks 6 Marks
Remembering: Exhibit memory
of previously learned material by
1 5 1 1 1 1 23
recalling facts, terms, basic
concepts, and answers.
Understanding: Demonstrate
understanding of facts and ideas
by organizing, comparing,
2 5 2 1 - 1 21
translating, interpreting, giving
descriptions, and stating main
ideas
Applying: Solve problems to
new situations by applying
3 acquired knowledge, facts, 5 1 - 1 1 19
techniques and rules in a
different way.
Analysing and Evaluating:
Examine and break information
into parts by identifying motives
or causes. Make inferences and
find evidence to support
generalizations.

Present and defend opinions by

making judgments about
4 information, validity of ideas, or 5 1 1 1 - 17
quality of work based on a set of
criteria.

Creating: Compile information

together in a different way by
combining elements in a new
pattern or proposing alternative
solutions.

Total 20x1=20 5x3=15 3x4=12 3x5=15 3x6=18 80 (34)

There will be Internal Choice in questions of 3 marks (1 choice), 4 marks (1 choice),
5 marks (2 choices) and 6 marks (2 choices). In all, total 6 internal choices.